Image Source: Pixabay
Silver price (XAG/USD) loses ground to near $31.70 per troy ounce during the Asian hours on Friday. A modest rise in US Treasury yields is adding downward pressure on non-yielding assets like Silver, as higher yields increase the opportunity cost of holding precious metals. At the time of writing, the 2-year and 10-year US Treasury bond yields stand at 4.20% and 4.33%, respectively.Additionally, the demand for dollar-denominated Silver struggles, as a stronger US Dollar (USD) makes the precious metal more expensive for buyers using foreign currencies. The US Dollar Index (DXY), which measures the value of the US Dollar against the other six major currencies, advances to near 104.50 at the time of writing.Traders expect potential stimulus measures from China as the National People’s Congress Standing Committee concluded its five-day meeting. Earlier this week, media reports suggested that the potential stimulus package could exceed 10 trillion yuan. As one of the world’s largest manufacturing hubs for electronics, solar panels, and automotive components, China may have increased demand for Silver.However, prices of the non-interest-bearing Silver gained ground following the Federal Reserve’s recent rate cut. The Federal Open Market Committee (FOMC) lowered its benchmark overnight borrowing rate by 25 basis points (bps) to a target range of 4.50%-4.75% at its November meeting on Thursday.Moreover, Federal Reserve Chair Jerome Powell indicated that the central bank is proceeding with interest rate cuts, given the ongoing tightness of monetary policy. Investors are now anticipating the release of the preliminary US Michigan Consumer Sentiment, which is expected later on Friday.More By This Author:EUR/USD Hovers Around 1.0750 With Negative Bias Amid Trump Trades Silver Price Forecast: XAG/USD Trades Below $32.50, Nine-Day EMAUSD/CAD Depreciates Toward 1.3850 Amid Stable Oil Prices On Us Election Day
